Undergraduate Honors Thesis


Deal Breaker: How Tariff Barriers Affect Cross-Border Mergers And Acquisitions Public Deposited

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  • This study examines the effects of tariff barriers on cross-border Mergers and Acquisition (M&A;) investment and shows how tariffs impact M&A; deal value. Since the 1990s, we saw a decline in tariff rates for most nations coinciding with a sharp rise in cross-border M&A.; The rise in cross-border M&A; has significant implications on various issues from antitrust to foreign direct investment. To analyze the effect of tariff barriers, I use a panel dataset primarily obtained from Bloomberg and UNCTAD. I employ a gravity model to allow for distance and macroeconomic effects along with a poisson distribution based on the counting nature of the dataset. Based on the data given, there is a statistically significant positive correlation between M&A; activity and tariff rates for both acquirer and target countries, indicating that a firms motive for cross-border M&A; is mainly a market-entry strategy
Date Awarded
  • 2018-01-01
Academic Affiliation
Granting Institution
Last Modified
  • 2019-12-02
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